BUENOS AIRES, Argentina,
Sept. 9, 2016 /PRNewswire/
-- IRSA Inversiones y Representaciones S.A. (NYSE: IRS;
MERVAL: IRSA), the leading real estate company in Argentina, today announces its results for the
Fiscal Year 2016 Ended June 30,
2016.
Consolidation of IDB Development Corporation
On October 11, 2015, the Group
obtained control of the Israeli company IDB Development Corporation
Ltd. ("IDBD"). During the past quarter, the investment was
consolidated in the balance sheet, and as from this third quarter
of fiscal year 2016, it is also disclosed at income statement
level. IDBD's fiscal year-end is on December
31 of each year, whereas the Company's is on June 30. Moreover, in compliance with Israeli
regulations, IDBD reports its quarterly and annual results after
the expiration of the Argentine statutory terms. For such reasons,
the Company will be unable to have available IDBD's quarterly
results as and when due in order to report them to the CNV in its
financial statements for the period ended March 31, 2016. Thus, the Company will
consolidate results from IDBD's operations with a three-month
mismatch adjusted for the effects of material transactions occurred
during the reported period. In this way, the results of IDBD's
operations for the period running from October 11, 2015 (date of acquisition) until
December 31, 2015 are included in the
interim comprehensive results of the Group for the nine-month
period ended on March 31, 2016,
except for material transactions considered. The Company estimates
a similar mismatch in obtaining IDBD's results in the succeeding
periods.
IDBD is one of the largest and most diversified holding
companies in Israel. Through its
subsidiaries, associates, joint ventures and other investments,
IDBD is engaged in numerous markets and industry sectors in
Israel and other countries,
including real estate (Property & Building Corporation),
supermarkets (Shufersal), agroindustry (Adama), insurance (Clal
Holdings Insurance Enterprises, hereinafter Clal), and
telecommunications (Cellcom), among others. After the closing of
this quarter, IDBD's shares were delisted from the Tel Aviv Stock
Exchange ("TASE"). However, the company will continue to be
registered with the TASE as a "Debentures Company" pursuant to
Israeli law, as it has bonds listed in such exchange.
Significant assets have been added in various industries in
which the Group did not have investments until to date, as well as
liabilities for loans taken by IDBD and its subsidiaries.
We have decided to break down reporting into an Argentine
Operating Center and an Israeli Operating Center. From the
Argentine Operating Center, the Group, through IRSA and its
subsidiaries, manages the businesses in Argentina and the international investments in
the Lipstick Building in New York
and the Condor Hospitality Trust hotel REIT. From the Israeli
Operating Center, the Group manages IDBD.
HIGHLIGHTS
- During fiscal year 2016, we started to consolidate the results
of our investment in IDB Development Corporation.
- EBITDA for fiscal year 2016 was ARS
6,178 million (ARS 2,974
million from Argentina and
ARS 3,204 million from Israel) and we recorded a net loss of
ARS 1,872 million, mainly explained
by non-cash items such as exchange rate differences and the fair
market valuation of Clal, owned by IDBD.
- Sales in our shopping centers grew 34% in fiscal year 2016 (30%
in the same shopping centers) and EBITDA from this segment rose
36%, reaching ARS 1,810 million.
- During fiscal year 2016 we sold investment properties, at a
gain of ARS 1,113 million.
- In connection with our investment in IDBD, during this year we
satisfied all our agreed commitments, and IDBD used such funds to
reduce its debt from NIS 4,814 million to
NIS 2,785 million.
- After year-end, IRSA issued a bond in the local market for
USD 184.5 million, accruing interest
at 7%, and for ARS 384.2 million,
accruing interest at Badlar + 299 bps, due in 2019, and used its
proceeds to repay almost all its short term debt.
Financial Highlights
(In millions of
Argentine Pesos)
Fiscal Year 2016
Ended June 30, 2016
Income
Statement
|
06/30/2016
|
06/30/2015
|
Revenues
|
32,675
|
3,403
|
Consolidated Gross
Profit
|
10,176
|
1,892
|
Consolidated Profit
from Operations
|
3,484
|
2,515
|
Profit / (Loss) For
the Period
|
(1,872)
|
650
|
|
|
|
Attributable
to:
|
|
|
IRSA's
Shareholders
|
(1,254)
|
520
|
Non-Controlling
interest
|
(618)
|
130
|
|
|
|
EPS
(Basic)
|
(2.18)
|
0.91
|
EPS
(Diluted)
|
(2.18)
|
0.90
|
|
|
|
Balance
Sheet
|
06/30/2015
|
06/30/2015
|
Current
Assets
|
42,763
|
1,896
|
Non Current
Assets
|
116,237
|
8,347
|
Total
Assets
|
159,000
|
10,243
|
Current
Liabilities
|
43,600
|
2,691
|
Non Current
Liabilities
|
101,899
|
4,682
|
Total
Liabilities
|
145,499
|
7,373
|
Non-Controlling
Interest
|
12,386
|
396
|
Shareholders'
Equity
|
13,501
|
2,870
|
IRSA Inversiones y Representaciones S.A. (NYSE: IRS, BASE: IRSA)
is Argentina's largest, most
well-diversified real estate company, and it is the only company in
the industry whose shares are listed on both the Bolsa de Comercio
de Buenos Aires and The New York
Stock Exchange. Through its subsidiaries, IRSA manages, through its
subsidiary IRSA Commercial Properties S,A, an expanding top
portfolio of shopping centers and office buildings, primarily in
Buenos Aires. The company also
develops residential subdivisions and apartments (specializing in
high-rises and loft-style conversions) and owns three luxury
hotels. Its solid, diversified portfolio of properties has
established the Company as the leader in the sector in which it
participates, making it the best vehicle to access the Argentine
real estate market. Additionally, IRSA owns a stake in Banco
Hipotecario, Argentina's largest
mortgage supplier in the country, 49% voting power of the US Reit
Condor Hospitality Trust and a 68.3% stake in IDB Development
Corporation.
A longer version of this press release with detailed information
is available on the web site: http://www.irsa.com.ar
IRSA cordially invites you to participate in its Fiscal Year
2016 Results Conference Call on Friday,
September 09, 2016, at 2:00pm Eastern
Time
If you would like to participate, please call:
United States: (877) 317-6776
International: +1-(412) 317-6776
ID# IRSA
To access the webcast, click on the link below:
http://webcast.neo1.net/Cover.aspx?PlatformId=U1gYlVOtgxew%2BOQ0wD3%2FJw%3D%3D
Investor Relations Department
IRSA Inversiones y Representaciones S.A.
ir@irsa.com.ar
www.irsa.com.ar
Tel: +5411-4323-7449
Follow us on Twitter: @irsair
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SOURCE IRSA Inversiones y Representaciones S.A.